Funeral costs 2026: funeral chains overcharging families by thousands - how to save

Thousands of people across England are being charged far more than they should for funerals, in some cases over £1,500 more for the same service. This is according to new research released ahead of Funeral Poverty Awareness Week (3–9 February 2026).

Free comparison service FuneralExperts.com also found significant price gaps between national funeral chains and local independents, raising concerns over unfair pricing and a lack of transparency in a sector most people only deal with when they’re grieving and vulnerable.

Big brands charging more than independents

The study looked at like‑for‑like funerals across England and found national chains consistently charging much higher prices. They:

• cost up to £1,550 more than the cheapest provider for comparable funerals
• cost £742 more than the market average for comparable funerals
• raised prices 2.5 times faster than the market average

The price gap between the cheapest providers and national chains has widened by 81%, from £675 to £1,220.

Jason Ghous, founder and CEO of FuneralExperts.com, says: “Most people have no scope of reference when it comes to funeral costs and often rely on the advice from the funeral service provider.

“Yet our research shows people are often paying far more than they need to or can afford. In addition, some firms are giving the misleading impression of being family-owned when they are part of major business groups.”

In the Liverpool test area, many funeral homes that appear to be local and independent were actually owned by just three major chains, often trading under long‑standing local names. As a result, families are losing £1.6–£2.2 million a year simply by choosing these higher‑priced brands.

Why this matters

The Competition and Markets Authority (CMA) have clear pricing and transparency rules, but the study found many big providers still charge significantly more than independents, often without a clear reason.

With over half a million funerals taking place in England each year, this adds unnecessary strain at an already vulnerable time.

The rising cost of grief plunges more bereaved families into debt

The average cost of a funeral in the UK in 2026 is now more than £4,000. Funeral costs, across the board, have risen faster than wages and benefits. Many grieving families do not have the savings to cover a £4,000 bill which often has to be paid upfront and can come suddenly and unexpectedly.

More people are turning to credit cards, payday lenders, and loans from friends and family to give their loved ones the sendoff they deserve. This, in turn, leads to long-term financial struggles and a strain on relationships.

However, there is support available, and campaigns like Funeral Poverty Awareness Week aim to signpost people to the resources they can use.

What support is available to cover funeral costs

Below, we’ve outlined some of the support available to help cover funeral costs.

There are government-funded options such as:

• the Funeral Expenses Payment which can help with essential funeral costs if you’re on certain benefits.
• the Bereavement Support Payment which gives financial help if your spouse or civil partner has died at work; it’s not means-tested.
• Public Health Funerals which are arranged by the council if no one can pay for a funeral or there is no next-of-kin who can or wants to pay for a funeral.

Other options to consider include:

• charities which may offer grants depending on your loved one’s job, background or circumstances.
• funeral directors who may offer payment plans or cheaper options like direct cremation.
• community or faith groups that can help with reduced costs for things like venues or memorial arrangements.

Citizens Advice, the council, your GP or local charities can also point you to benefits, grants and lower‑cost options in your area.

Frequently asked questions – covering funeral costs in 2026

Worried about covering funeral costs in 2026? We’ve addressed some of the most common concerns people have below.

What is the least expensive funeral option in the UK?

A direct cremation is usually the cheapest option. It’s an unattended cremation with no service, no mourners and fewer extras.

In 2026, prices for direct cremations typically range between around £1,000 and £1,800 depending on the provider and location. We found options as cheap as £895, but some providers charge as much as £1,885, so it’s worth doing your research.

What is the average cost of a funeral in the UK?

As of 2026, the average UK funeral now costs more than £4,000. Burial tends to be more expensive than cremation. Costs vary by region, with London being the priciest and Northern Ireland usually the cheapest.

Are funeral plans a good idea?

A funeral plan lets you pay in advance for a future funeral at today’s prices. They’re regulated by the FCA, which helps protect your money. They can be useful if you want to fix the cost and ease stress for family but always check what’s included. Some plans don’t cover everything and some work out more expensive than simply saving for your funeral.

Key takeaways - covering funeral costs in 2026

• New research shows national funeral chains are charging families up to £1,550 more for the same type of service.
• Their prices have also risen much faster than the rest of the funeral market since 2022.
• Many funeral homes that look “independent” are actually owned by large chains and often cost more.
• There is support available, from government payments to charity grants and cheaper funeral options like direct cremation.
• Shopping around, asking for clear price lists and checking who owns the funeral home can save you hundreds, sometimes thousands of pounds.